Lenders are not recommended for anyone looking to secure a mortgage. An expert can ensure you get the right lender for you and the best rates possible. You can contact us at any time to inquire or just ask our experts about your mortgage questions.
An HMO, as many call it, is actually a large HMO. It is a rental property where five or more tenants share the bathroom, kitchen, and toilet facilities. A building may also have a number of stories. A HMO licence is required by landlords to operate Large HMOs. It will be valid for five-years and is sometimes called Licsenced HMOs.
There are a small number of UK specialists who will lend on large HMO property and understand the risks associated with multiple tenants. They each have their own definitions for HMOs and what they will lend against. A broker can help you create your application and match you up with the right broker. CMB is an experienced broker who can package your application in a way that suits the lender. This speeds up the entire application process.
HMO mortgage lenders will typically take rental income into consideration. This can dramatically increase the mortgage amount. HMO mortgages can offer variable and tracker rates. LTV rates are usually set at 80% LTV. Rates that offer attractive rates come with higher deposits and lower LTVs.
Number crunching will make your HMO more profitable. Our HMO mortgage advisors are experts and can help maximise your rental income. Securing the best deal for your HMO is key to making it profitable. Majority of lenders that offer preferential rate often do so through mortgage brokers.
Complex property types will require more risk-averse lenders to be open to lending to them. Even those that are willing to lend to them, they will each have their own criteria.
Are HMO mortgages different? - HMO mortgage rates tend to be higher than standard buy to let mortgage products. This is because the HMO mortgage market is less competitive in terms of the number of lenders. Lenders that are prepared to lend on an HMO will charge slightly higher fees and rates for a mortgage.